CCP 08-09-2004 - Laserfiche WebLink

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Memo Preliminary 2005 Budget 2 , . Additionat operating costs for the new Maintenance Facility have been budgeted. . Credit Card implementation - $12,000 has been budgeted for on-going service fees. · Revenue reimbursement for the half-time position from thc Lake Johanna Fire Department has been eliminated as they plan to hire a full-time Fire Marshal. · The Board of Water Commissioners has proposed a water rate increase of 5 cents! I OOCF. This translates into a rate increase of 26% for Arden Hills compared to the rate we have been paying to St. Paul. A finat determination will be made in October. Thc pretiminary budget includcs this proposed increase. · TCAAP revenues and expenditures are projected to decline due to the fact that the plmming line item, which comprises 60% ofthe total TCAAP budget, will be significantly completed in 2004. . Please note that the projccted expenditures exceed projected revenues. The variance is primarily due to funding construction projects from the fund balance. . Overall, the Preliminary 2005 Budget has becn rcduced by 2.9% as compared to the Adopted 2004 Budget. It should be noted that the City's past budgeting practices only included depreciation charges for the capital improvcments in the enterprise funds. The Preliminary 2005 Budget reflects the true cash outlays for the capital improvements. Both types of budgeting practices are common and acceptable. Also, it should be noted that the ovcrall proposed 2005 capital expenditurcs are lower than 2004 expenditures. Therefore, if the true cash capital improvements costs are included in the 2004 Budget, the overall reduction is much greater- . 9.4%. A preliminary levy must be certified to the County by September 15, 2004. RECOMMENDED ACTION: Information provided for discussion purposes. .